India has received 52,037 applications from taxpayers to settle indirect tax disputes amounting to Rs 27,911 crore, Revenue Secretary Ajay Bhushan Pandey told reporters today.
These applications have been received under Sabka Vishwas—Legacy Dispute Resolution Scheme, 2019, introduced in the Union Budget 2019-20, that allows taxpayers to pay outstanding tax dues without interest, fine or penalty. It can be availed between Sept. 1 and Dec. 31.
According to the government's submission to Parliamentary Standing on Finance, the quantum of indirect tax arrears that the tax department can collect were Rs 28,909 crore as on Aug. 31, while the amount of indirect tax arrears that are difficult to collect are Rs 2.45 lakh crore as Aug. 31.
The tax dispute resolution scheme provides a relief of 70 percent if the total tax due is up to Rs 50 lakh for cases pending in adjudication or appeal in any forum. For a demand of more than Rs 50 lakh, taxpayers will get a relief of 50 percent. The relief is available for cases under investigation and audit where the duty involved is quantified and communicated to the taxpayer or admitted in a statement by June 30. In cases where duty demand is confirmed and there is no appeal pending, the relief offered is 60 percent of the tax due is up to Rs 50 lakh, and 40 percent if the tax due is over Rs 50 lakh. In cases of voluntary disclosure, the person availing the scheme will have to pay only the amount of disclosed duty.
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